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-   -   Rumor: MPC will go way of PPS (https://www.flyertalk.com/forum/cathay-pacific-cathay/1644009-rumor-mpc-will-go-way-pps.html)

Cathay Boy Jan 30, 2015 8:28 am


Originally Posted by sxc (Post 24260684)
To an extent the really top fliers are not going to alter their flying pattern. And CX is going to shut out people to appease those top fliers. Those people who get shut out may decide that being loyal to CX is no longer necessary because the bar is too high.

So CX retains the customers that wouldn't move anyway, and the customers with discretionary spend (personal fliers, those who can choose their carrier and not on commercial contract) may decide that loyalty isn't worth it, and choose the lowest fare available.

Is this a net loss for CX in the end?

This is exactly what will happen. True F/J fliers don't worry about benefits and program perks the way frequent Y fliers do. Their flying pattern won't change much just because CX kicked out Y-DM from their lounges or make priority boarding more exclusive.

Frequent Y fliers on the other hand are the ones that bean counts benefits, compares programs, and aim for highest tier possible with one airline. If I had to choose between AA EXP or CX GO (the highest tier the enhanced MPO will allowed me to make, or some watered down future DM tier that is pretty much the current CX GO), it's a no-brainer.

So in essence, CX forced someone like me to give my $35,000 to $40,000 annual revenue to AA, and of course once I saved up all the AA points guess which airline I'll spend it on, CX.....

As for posters that argues lounge access is a cost, it's a OW benefit, as OWE I will have access to F lounge, so ironically the new enhanced CX DM might bar DMs from going to a lounge that OWE can easily enter. And please don't say CX is making money at $50 a pop, that's the best guess in this group, that number seems high, in reality it's probably around $20 USD a pop.

percysmith Jan 30, 2015 10:33 am

TPG recommends going for AAdvantage for Y travellers http://thepointsguy.com/2015/01/brit...+Points+Guy%29

percysmith Jan 30, 2015 11:25 am


Originally Posted by Cathay Boy (Post 24262114)
This is exactly what will happen. True F/J fliers don't worry about benefits and program perks the way frequent Y fliers do. Their flying pattern won't change much just because CX kicked out Y-DM from their lounges or make priority boarding more exclusive.

I argued a bit earler that this may bind some members with discretionary spend to CX more.

But to achieve the new requirements these people will have to be J/F fliers.

If they're already in J/F (i.e. qualifying for the next renewal), they don't see a lot more for being MPO.

They have to be back in Y for some reason (e.g. corporate travel in J, business travel in Y or redemption) in order to get any bang for their discretionary buck.

---

Why would CX do this I wonder. They won't bother with the trial balloons like the SCMP pieces unless they think it's a win for them at least initially (te trial balloons get us talking and they can fine-tune their models)

Perhaps there really are some split J/Y fliers out there. Or CX is merely trying to cut cost (they can charge AA if Cathay Boy and QRC3288 went over to AA EXP, for instance). Perhaps a bit of both.

JALPak Jan 30, 2015 12:58 pm


Originally Posted by Cathay Boy (Post 24262114)
This is exactly what will happen. True F/J fliers don't worry about benefits and program perks the way frequent Y fliers do. Their flying pattern won't change much just because CX kicked out Y-DM from their lounges or make priority boarding more exclusive.

Frequent Y fliers on the other hand are the ones that bean counts benefits, compares programs, and aim for highest tier possible with one airline. If I had to choose between AA EXP or CX GO (the highest tier the enhanced MPO will allowed me to make, or some watered down future DM tier that is pretty much the current CX GO), it's a no-brainer.

So in essence, CX forced someone like me to give my $35,000 to $40,000 annual revenue to AA, and of course once I saved up all the AA points guess which airline I'll spend it on, CX.....

As for posters that argues lounge access is a cost, it's a OW benefit, as OWE I will have access to F lounge, so ironically the new enhanced CX DM might bar DMs from going to a lounge that OWE can easily enter. And please don't say CX is making money at $50 a pop, that's the best guess in this group, that number seems high, in reality it's probably around $20 USD a pop.

Sure hard-core Y FTers will compare programs and shop around. But is this true for regular Y frequent flyers?

Please...you are not going to give your revenue to AA. You have already admitted that.

Originally Posted by Cathay Boy (Post 24195112)

Originally Posted by percysmith (Post 24194259)
Well would you really fly more AA? Or simply credit CX flights to AA.

And if they think they are giving too many premium seats to partners they can easily do something about that.

Well, my company is flying me Y+ now (but not J) so I'll probably still stick with CX because Y+ is Y+.... darn you CX, you got me, darn you!


nshizuka25 Jan 30, 2015 4:03 pm


Originally Posted by JALPak (Post 24263616)
Sure hard-core Y FTers will compare programs and shop around. But is this true for regular Y frequent flyers?

Please...you are not going to give your revenue to AA. You have already admitted that.

If he switch he will need to change his ID to American boy :D

wandering_fred Jan 30, 2015 5:31 pm


Originally Posted by percysmith (Post 24263082)
Perhaps there really are some split J/Y fliers out there. Or CX is merely trying to cut cost (they can charge AA if Cathay Boy and QRC3288 went over to AA EXP, for instance). Perhaps a bit of both.

Depends I guess on how you define "split". In HKG, there are the exHKG fliers and the exTPE fliers. Or in my case exCMB fliers. Which of those category of J fliers does (or will) CX value if the "new MPC" comes into being?

And where will the regular PEY fliers find themselves?

Happy wandering

Fred

iadp Jan 30, 2015 7:24 pm


Originally Posted by percysmith (Post 24263082)

Perhaps there really are some split J/Y fliers out there.

I'm one of them and it's on my own dime. J/PE on CX, J/Y on AA. I started out pure Y but each year my ratio of paid J increases to the point it's was about 50/50 last year. Mostly J so far this year.

brunos Jan 31, 2015 12:22 am


Originally Posted by percysmith (Post 24263082)
Perhaps there really are some split J/Y fliers out there. Or CX is merely trying to cut cost (they can charge AA if Cathay Boy and QRC3288 went over to AA EXP, for instance). Perhaps a bit of both.

Of course, there are many split J/Y flyers. Many companies pay for J travel for 10+ hrs flights to Europe or America but for Y travel regional.

And cost is becoming increasingly important when pax are increasingly price sensitive. In my experience there is a huge number of DMs in the wing F lounge gorging themselves on the food before their weekly regional flight in cheap Y. It is a business decision for CX to be more price competitive while reducing the lounge cost of all these SL/GO/DM. BA just did the same for the same price-competitiveness motivation (they also greatly reduced the ear/burn rate for most Y flyers, so much more expensive awards, meaning less cost for BA). And CX gets paid for other OW elites using their lounge, so that is not an issue.

Cathay Boy Jan 31, 2015 4:27 pm


Originally Posted by percysmith (Post 24262806)
TPG recommends going for AAdvantage for Y travellers http://thepointsguy.com/2015/01/brit...+Points+Guy%29

Between CX service, hardware, and current DM benefits I still prefer MPO even thought I know AA will just shower me with freebie upgrades, bonus points, etc.

But of course MPO benefits reduction, I need to reevaluate.

cxfan1960 Jan 31, 2015 4:52 pm


Originally Posted by Cathay Boy (Post 24269169)
Between CX service, hardware, and current DM benefits I still prefer MPO even thought I know AA will just shower me with freebie upgrades, bonus points, etc.

But of course MPO benefits reduction, I need to reevaluate.

Understandable... For economy, you can only get AA miles for CX class H or above. As you are flying PEY these days, you can get 110% AA miles anyway.

Cathay Boy Jan 31, 2015 9:01 pm


Originally Posted by cxfan1960 (Post 24269261)
Understandable... For economy, you can only get AA miles for CX class H or above. As you are flying PEY these days, you can get 110% AA miles anyway.

Exactly since I don't fly Y anymore, and then I can make AA EXP easy and get more bonus miles, freebie upgrades, etc.

so in essence, with this "enhancement" I'm still going to "clug" the priority line as OWE, use the F lounges, and get more miles to redeem CX F/J cabins more easily and not even paying CX YQ/YR?

Is CX really better off with their top tier Y fliers all going this route?

JALPak Jan 31, 2015 9:07 pm


Originally Posted by Cathay Boy (Post 24270044)
Exactly since I don't fly Y anymore, and then I can make AA EXP easy and get more bonus miles, freebie upgrades, etc.

so in essence, with this "enhancement" I'm still going to "clug" the priority line as OWE, use the F lounges, and get more miles to redeem CX F/J cabins more easily and not even paying CX YQ/YR?

Is CX really better off with their top tier Y fliers all going this route?

Absolutely. They get paid even more every time you fly with them and use their lounges. Also don't have to pay others when you enter other lounges. No liability for the miles from your flight once it paid AA to credit your flights. CX got paid when you redeem miles and it could care less whether you pay YQ or not on that redemption as AA pays a pre-negotiated rate.

Enhancements Jan 31, 2015 9:11 pm


Originally Posted by JALPak (Post 24270067)
Absolutely. They get paid even more every time you fly with them and use their lounges. Also don't have to pay others when you enter other lounges. No liability for the miles from your flight once it paid AA to credit your flights. CX got paid when you redeem miles and it could care less whether you pay YQ or not on that redemption as AA pays a pre-negotiated rate.

Well then, so much for actually improving the experience for people front of the cabin...

JALPak Jan 31, 2015 9:19 pm


Originally Posted by Enhancements (Post 24270081)
Well then, so much for actually improving the experience for people front of the cabin...

Not if CX is creating a Titanium lounge and implementing extra benefits for its F pax and top tier members which those people won't have access to.

percysmith Feb 1, 2015 1:36 am

Jalpak: is it likely? Where's this new Titanium/F lounge going to be implemented (in HKG)?


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